Indonesian fintech Kredivo bags additional $100m debt facility from Victory Park Capital

Indonesian digital credit platform Kredivo has secured an additional $100-million debt facility from Chicago-headquartered private credit firm Victory Park Capital Advisors (VPC), according to an official announcement.

Kredivo had closed a $100-million debt facility with VPC last November, which marked its largest-ever deal with a credit provider.

The combined size of the debt facility for Kredivo makes it VPC’s largest debt commitment to a fintech firm outside of the US and Europe.

Kredivo will use the proceeds from the latest transaction to grow and further diversify its loan book, all of which is third-party generated.

“The large capital pool made available via this facility increase will enable the business to scale further in 2021 and beyond and get us closer to our goal of serving up to 10 million customers in Indonesia over the next few years,” said Kredivo Indonesia CEO Umang Rustagi.

The transaction comes as Kredivo is learnt to have been in talks with VPC for a potential public listing via one of the latter’s SPAC. The US private capital manager has four blank cheque companies — ranging from $200-225 million in size — to its name.

Meanwhile, Kredivo’s parent company, FinAccel, has acquired a 24% stake in local bank PT Bank Bisnis Internasional Tbk, according to a stock exchange disclosure by the latter in May. 

Founded in 2016, Kredivo provides customers in Indonesia instant credit financing for e-commerce and offline purchases and personal loans. Its users can ‘buy now and pay later’ (BNPL) at low-interest rates, while its merchant partners benefit from instant point-of-sale financing. 

It competes directly with Sequoia-backed digital credit lender Akulaku, and peer-to-peer lenders like UangTeman, as well as online marketplaces and payment startups like Tokopedia, Traveloka, and OVO which have also developed their own BNPL features. 

Kredivo raised one of the largest funding rounds by a non-unicorn company in the region when it bagged $90 million in a Series C round in December 2019 co-led by South Korea’s Mirae Asset-Naver Asia Growth Fund and the Australian venture capital firm Square Peg. The round reportedly pegged Kredivo’s valuation at almost $500 million. 

Other investors on Kredivo’s cap table include Singtel Innov8, Telkomsel Indonesia, MDI Ventures, Cathay Innovation, DST Partners and Kejora Intervest.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.